Almost 100 Melbourne workers will be backpaid a total of $40,000 following investigations by workplace watchdogs.
The Fair Work Ombudsman recovered the wages for 99 underpaid workers after a swoop of 48 small to medium-sized businesses in inner Melbourne, in a joint campaign with the Australian Securities and Investments Commission.
The largest underpayment occurred at a CBD noodle bar that short-changed 14 employees a total $8694, as a result of underpaying minimum hourly rates and penalty rates over a six-month period.
The blitz targeted businesses run by first-time directors across a range of sectors, including accommodation, food services, construction, hiring and real estate.
Inspectors found 26 businesses were fully compliant with the law, but of the remaining 22, six had pay slip and record-keeping breaches, nine had monetary breaches and seven had both pay slip and record-keeping and monetary contraventions.
Two formal cautions were issued along with eight fines totalling $7020 for pay slip and record-keeping breaches.
A compliance notice was also issued for a restaurant, requiring the employer to back-pay $5303 to 14 workers.
All businesses agreed to backpay employees in-full after being spoken to by inspectors.
Fair Work Ombudsman Sandra Parker said ignorance was no excuse for underpayments.
"During our surprise visits of several Melbourne workplaces, we were alarmed to discover many first-time company directors were not aware of their lawful obligations under Australia's workplace relations laws," Ms Parker said.
"If you are new to running a business, it is your responsibility to ensure you understand your workplace obligations before you hire any employees."
She said the FWO has a range of free tools to support directors get the basics right as quickly as possible.
